Summary
- He said people earning up to Rs50,000 per month will not pay income tax.
- Tarar said the government is also bringing millions of retailers into the tax net.
- He said the budget also includes tax relief on some health-related products for women to reduce costs.
ISLAMABAD: Information Minister Attaullah Tarar said on Wednesday that the federal budget for 2026–27 is a relief-oriented financial plan. He said Pakistan has moved from economic uncertainty toward stabilisation.
He said recent reforms in taxation, governance, and enforcement helped improve the economy. He added that engagement with international financial institutions also supported stability and reduced the risk of default.
Tarar said the government now has space to provide relief to different segments of society. He said the fiscal improvements have allowed tax reductions for salaried individuals and support measures for middle-income groups.
He said people earning up to Rs50,000 per month will not pay income tax. He added that those earning between Rs50,000 and Rs100,000 will pay about one percent tax. He said further relief has also been given in other income categories.
The minister said reforms in the Federal Board of Revenue (FBR) played a key role in improving revenue collection. He said enforcement and digitalisation measures helped increase government income.
He said influence-based postings have been ended in tax departments. He added that appointments are now made on merit. He said digital systems have reduced direct contact in customs operations and improved transparency.
Tarar said anti-evasion actions have improved revenue collection in sectors like sugar, tobacco, cement, and beverages. He said digital monitoring systems are now used to track production and sales in the sugar industry.
He said the tobacco sector is also under strict enforcement due to large-scale tax leakage. He added that illegal trade networks are being targeted to recover lost revenue.
On housing, he said taxes on small property transactions have been reduced. He said Rs90 billion has been allocated for the “Apna Ghar” housing scheme.
He said the construction sector will create demand in related industries such as cement, steel, and building materials.
Tarar said export incentives have been improved. He said advance tax and super tax on exporters have been removed. He added that low-cost financing has been introduced to support exports and job creation.
He said youth programmes, agriculture loans, and skill development projects are part of the government’s economic plan. He added that about 550,000 young people will benefit from these initiatives.
In agriculture, he said import duties on machinery have been removed to reduce costs for farmers. He added that low-interest loans and research reforms are also being introduced.
Tarar said the government is also bringing millions of retailers into the tax net. He said a simplified fixed-tax system will be used to improve compliance.
He said the Benazir Income Support Programme has been expanded to support more than 10 million families. He added that payments are being made directly to deserving households, especially women.
He said the budget also includes tax relief on some health-related products for women to reduce costs.
Tarar said salaries have been increased and the minimum wage raised by 10 percent. He said freelancers and IT professionals will not face additional tax pressure.
He said the budget reflects both reform and relief. He added that the government’s focus is on stability, growth, and long-term economic recovery.
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